- NZD/USD staged a decisive rebound in the American session.
- US Dollar Index struggles to hold above 92.50.
- NZD/USD remains on track to close the week in the negative territory.
The NZD/USD pair dropped below 0.6950 in the early American session but managed to make a sharp U-turn. As of writing, the pair was trading at 0.7003, where it was up 0.38% the day. On a weekly basis, NZD/USD remains on track to close in the negative territory despite Friday's rebound.
The renewed USD weakness seems to have fueled NZD/USD's rally in the second half of the day. The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls increased by 850,000 in June. Although this reading beat the market expectation of 700,000 is failed to help the greenback gather strength.
Further details of the jobs report showed that the Labor Force Participation Rate stayed unchanged at 61.6% and the Unemployment Rate edged higher to 5.9% from 5.8% in May. Following an immediate spike to a multi-month high of 92.74, the US Dollar Index lost its traction and was last seen losing 0.1% at 92.44.
NZD/USD near-term outlook
Credit Suisse analysts think that NZD/USD could extend its slide with a move below the 0.6945/23 area.
"The ‘measured objective’ to the in-range top still projects a move to 0.6913, which suggests this breakdown will be seen, opening up 0.6875/61 next, with the next initial support then seen at 0.6810/00," analysts added. “Near-term resistance moves to 0.7052/57, then 0.7096/20, which is the ‘neckline’ to the previously highlighted short-term top, which we look to hold if reached. Above here the next level is seen at 0.7161/74, above which would negate the top.”
Additional levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.